ISLAMABAD: National Highways Authority (NHA), an arm of Ministry of Communication, has brushed aside corruption charges levelled by Minister for Communication, Murad Saeed, against Pakistan Muslim League-Nawaz (PML-N) government in roads contracts, saying that Pakistan’s higher-ups need not make such statements.
This was noted by the NHA Member Planning in response to a letter of Transparency International-Pakistan (TI-P) to Secretary Communication, seeking clarification on a press conference held on September 26, 2021, during which Minister of Communications, and Minister for Information and Broadcasting, alleged that over Rs1000billion corruption was done in contracts awarded by NHA during 2014 to 2018.
On October 17, 2021, Prime Minister’s Citizen Portal sent following email to TI-P, wherein NHA Member Planning was quoted as saying that there is no corruption; NHA awarded all the contracts as per PPRA Rules following open bidding under wide circulation.
According to him all the bids are and were evaluated and bids awarded to lowest bidder, and the awarded projects on average 15% below the estimates thus causing savings to national exchequer. Now in current regime, due to COVID and other economic factors, not much work was undertaken in the first two years.
However, when work is tendered, under demand and supply principle, the bidders are quoting -20 to -40 percent. NHA again awards to the lowest evaluated bidder following same procedures as followed earlier.
“Market dynamics change with time, we may see upward trend in future when work will be in abundance,” NHA Member Planning said, adding that unfortunately Pakistan’s higher-ups need to understand and should not make such statements. NHA Audit is done multiple times and no such issue is raised other than normal routine observations.
TI-P maintained that NHA reply to the PM’s Citizen Portal, and the acceptance by PM’s Citizen Portal of NHA clarification and closing the complaint, confirms that the Minister of Communications announcement was wrong, that the motorway contracts awarded from 2013-2018 were at three times higher costs than the cost of motorway contracts being awarded in 2020/21 under his minister-ship and caused loss of over Rs 1,000 billion due to corruption.
TI-P has requested Secretary Communication to update the Prime Minister, that the statement of the Minister that the motorway contracts awarded from 2013-2018 were at 3 times higher than the cost of motorway contracts being awarded in 2020/21 under his minister-ship and caused loss of over Rs 1,000 billion due to corruption, was wrong.
Accordingly following comments of TI Pakistan in its letter of October 4, 2021 are proved correct by NHA reply to Prime Minister’s Citizen Portal: (i) allegation of violation of PPRA Rules 2004, Rule No 47, is correct, and the NHA has not uploaded on the PPRA website the awarded Contracts documents of all contracts, from 2013 to 2021, viz. BOQ, Contract Agreements, Conditions of Contracts, and Specifications etc ;(ii) it is to be noted that the cost of construction for roads depends on various factors, such as design parameters, specifications, terrain/filling/cutting/designed load /embankment protection/sizes of lane, depth of base and sub base, carpeting thickness, culverts and bridges etc. The price escalation and rupee depreciation during last 9 years is also very high. The prices of MS Bars in 2013 was Rs 80,000/ton, in 2021 it is Rs 145,000/ton, and US $ vs Pak Rupee rates in 2013 were Rs 100/$ and in 2021 US $ is at Rs 165, which has to be checked/verified from 2013 contracts of NHA;(iii) one example of this cost variation of Road Contracts due to design/drainage structures/terrain/spec and etc. factors, is in the recently awarded two contracts by NHA in 2021, for the construction of Ziarat Mor–Kach Hrnai Road and Harnai–Sanjavi Road. The Ziarat Mor–Kach Harnai Road is 109.882 KM long and its contract is awarded at Rs 2,404,338,786/- which means Rs. 21.88 million per KM. Whereas the Harnai–Sanjavi Road is 55.834 KM long and its contract is awarded at Rs. 2,551,684,210/- which means Rs. 45.7 million/KM.
TI-P contended that it shows that the per kilometre for Harnai– Sanjavi Road is awarded at twice the price for per KM cost of Ziarat Mor–Kach Hrnai Road .
NHA, in its reply of October 17, 2021, also confirmed that the two Contracts awarded in 2021, are at 40% and 20% lower than NHA’s own Engineers’ Estimate of 2021, and not lower than the costs of 2013 awarded contracts.
TI-P maintained that Secretary NHA has not updated the PPRA website, in compliance with Rule No. 47 of PPRA Rules 2004, for immediate posting of all motorway and other contracts under CPEC and non CPEC projects awarded during 2013-2018 as well as during 2018-2021, along with rates/prices quoted/BOQ, on PPRA website, which should be expedited.
Copyright Business Recorder, 2021
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